Regulations

Story: Binance Operates in Europe Without MiCA License, Leaving Users Unprotected

By Bruce Buterin

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KYC Validated, License Absent. The MiCA framework — Markets in Crypto-Assets — is clear on this point: platforms wishing to…

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€70,000 Fine for Bitpanda: A Clear Signal. Meanwhile, other market players are getting reprimanded.

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A Dangerous Precedent for the European Crypto Ecosystem. The real issue here is the effect it could have on the rest of the market.

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Binance opens accounts. In Germany, Austria, Belgium, Spain, France. Without a MiCA license. And no one is blocking anything.

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This is the conclusion drawn from recent tests conducted after the new European rules came into effect in July.

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The MiCA framework — Markets in Crypto-Assets — is clear on this point: platforms wishing to operate in the European Union must obtain approval from the competent authorities.

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What makes the situation particularly unclear is the absence of strict blocking. It was expected that Binance would implement serious geographical restrictions after July.

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Meanwhile, other market players are getting reprimanded. On August 14, the Austrian FMA imposed a €70,000 fine on Bitpanda for similar violations related to MiCA obligations.

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And this is probably the strangest part of the whole story. Because the risk for Binance is real.

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Related: Binance Employees in Emirates Cleared After Quick Investigation on Client Fund Flows

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Binance says the funds are safe. But Binance says a lot of things.

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The real issue here is the effect it could have on the rest of the market. If Binance — the world's largest platform by volume — tests the limits of MiCA without immediate…

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The adoption of MiCA was supposed to clarify the rules of the game in Europe. Provide investors with real protection. Create a more stable and readable crypto market.

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European authorities are watching. Financial sanctions are already a reality for some players, as Bitpanda learned on August 14.

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Related: Revolut Axes USDT Amid MiCA, But Global Demand Soars with Lemons $9.3B Volume

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